What a 620 score means
A 620 score sits at the low end of what many mortgage lenders accept. You need a credit score of at least 620 for a CapCenter loan. Meeting the minimum doesn't mean you'll be approved, and it doesn't mean you won't be. It means the rest of your file will be weighed closely.
Because you're at the line, a small drop before closing, such as a late payment or a new card, could matter. Keep things steady until your loan closes.
How your score affects your rate
Lenders price loans by risk. A lower score usually means a higher rate or an upfront fee. Even a modest score improvement can move you into a better pricing range, so it's worth checking where you stand before you apply. Your quote will show your estimated rate for your situation.
What else lenders look at
Your score is only part of the picture. Lenders also review:
- Combined loan-to-value (CLTV): all your loans on the home compared with its value
- Debt-to-income: your monthly debts, including the new loan, compared with your income
- Payment history on your current mortgage
- Stable, documented income
How much you may be able to borrow
CapCenter home equity loans range from $50,000 to $250,000. The maximum depends on the loan type and purpose, and a loan consultant can tell you yours. Your home's value, your equity, your credit and your income all play a part, so at 620 you may be offered less than you'd get with a higher score.
The home also needs to qualify: a single-family primary residence or second home.
Ways to raise your score first
If you have some time, a few steps can help:
- Pay credit card balances down, ideally before the statement closes.
- Pay on time from here on, including small bills.
- Check your credit reports and dispute errors.
- Avoid opening new credit accounts before you apply.
Compare a cash-out refinance
A home equity loan keeps your first mortgage as it is and adds a separate fixed-rate loan. A cash-out refinance replaces your mortgage with a larger one. If today's rates are at or below your current rate, a cash-out refinance may be worth comparing. If you have a low rate you'd like to keep, a home equity loan may fit better.
What it costs with CapCenter
CapCenter home equity loans come with ZERO Closing Costs (restrictions apply) and a fixed rate for 15, 20 or 30 years. An appraisal isn't required in most cases.